Letting your friends dictate the kind of life you lead whereas they earn more is a misleading idea. You end up taking debts to support a lifestyle that you can hardly sustain just to belong to some class.

Some people don’t actually make the effort to save. While you may not have experienced any emergency so far, you are never sure of what will happen tomorrow. Always have an emergency savings account just in case you get ill or lose your job.

3. Not tracking your funds

As early as now, you need to start budgeting for your income no matter how meagre it is. This way, it will be easier to plan for more money once you get there. When you don’t budget, you are likely to overspend or leave out some more important issues unattended.

You might think that you have all the years to repay your student loan but the earlier you pay the better. The more the interests gets accumulated, the more you will have to pay for an even longer period. You don’t want to be gambling between repaying your HELB and paying your kids’ school fees.

5. Getting a car on loan

Do you actually need a car in your 20s? Well, it’s more of a luxury at this time and unless you have the money, you shouldn’t be taking a loan for a good ride. You would rather take a loan and invest in business than acquiring a liability on loan.